As governments attempt to boost their economies with different forms of support or quantitative easing, inflation continues to hit record highs, with the US witnessing the highest inflation ever in 30 years. On the end of the spectrum, Lebanon and Argentina are experiencing hyperinflation.

This means savers are becoming losers!

If you keep your money idle in the banks (or stashed at home), its purchasing power is lost over time. Today's dollar will not buy the same value of goods in ten years. This is due to inflation. Inflation measures the average price level of a basket of goods and services in an economy; it refers to price increases over a specified period. As a result of inflation, a specific amount of currency will be able to buy less than before. Therefore, if you're worried about inflation, you should find the right strategies and investments to hedge against inflation.

A disciplined investor can plan for inflation by investing in asset classes that outperform the market during inflationary climates. Here are some of the top ways to hedge against inflation.

Precious Metals

Gold and silver have often been considered hedges against inflation. Many people have considered precious metals as "alternative currencies," particularly in countries where the native currency is losing value. Gold and silver are real, physical assets and tend to hold their value for the most part.

However, neither gold nor silver is a perfect hedge against inflation. Central banks tend to increase interest rates when inflation rises as part of monetary policy. Holding onto an asset like precious metals that pay no yields is not as valuable as holding onto an asset that does, particularly when rates are higher, meaning yields are higher.

Commodities

Commodities are a broad category that includes grain, precious metals, electricity, oil, beef, orange juice, natural gas, foreign currencies, emissions, and certain other financial instruments.

Commodities and inflation have a unique relationship, where commodities are an indicator of future inflation. As the price of a commodity rises, so does the price of the products that the commodity is used to produce.

Before investing in commodities, investors should be aware that they are highly volatile, and investor caution is advised in commodity trading. Because commodities are dependent on demand and supply factors, a slight change in supply due to geopolitical tensions or conflicts can adversely affect the prices of commodities.

Income Producing Real Estate

Real estate works well with inflation. This is because, as inflation rises, so do property values and the amount a landlord can charge for rent or lease. This results in the landlord earning a higher rental income over time. This helps to keep pace with the rise in inflation. For this reason, income-producing real estate is one of the best ways to hedge an investment portfolio against inflation. Property prices and rental income tend to rise when inflation rises.

Like any investment, there are pros and cons to investing in real estate. First, when purchasing real estate, the transaction costs are considerably higher (as compared to purchasing shares of stock). Second, real estate investments are illiquid, meaning they can't be quickly and easily sold without a substantial loss in value. If you are purchasing a property, it requires management and maintenance, and these costs can add up quickly. And finally, real estate investing involves taking on a great deal of financial and legal liability. Those investors who want to overcome the cons of investing in real estate and be passive investors without the hassle of property management can choose to invest in Real Estate Investment Trusts (REITs) or Real Estate Crowdfunding (REC).

Related: Step-By-Step Guide to Real Estate Investing

REITs are companies that own and operate income-producing real estate. A REIT consists of a pool of real estate that pays out dividends to its investors. On the other hand, investors can enjoy fractional ownership of a property that a real estate crowdfunding company manages. In that way, investors earn their share of the income from the rent, lease, or capital gain to the extent of their property ownership. If you seek broad exposure to real estate with a low expense ratio, consider real estate crowdfunding.

Stock and Bonds

If you select a conservative portfolio, investing in stocks and bonds is considered safe. Selecting the stocks and bonds to include in your portfolio requires proper analysis of each; otherwise, paying an investment advisor to assemble such a portfolio could help.

Investing in a conservative portfolio of stocks and bonds could be seen as a straightforward, easy investment strategy. But like all investment plans, it does have some disadvantages. Compared to an all-equity portfolio, a conservative portfolio will underperform over the long term. It's important to remember that a conservative portfolio will help you hedge against inflation (and keep you safer). Still, you'll likely miss out on returns compared to a portfolio with more stocks.

Related: Which Assets Build Wealth – Stocks, Bonds, or Real Estate?

What about Cryptocurrencies?

Almost everyone in our circle of friends and colleagues is into bitcoins, even though they don't understand what they're getting into or the high risk of investing in digital currencies. When they read how other investors could make thousands of dollars in a few days in 2017 with the help of cryptocurrencies, they jumped on the wagon when the ride was going up smoothly. Only time will tell whether the ride is still going up or if Bitcoin investors need to brace themselves for a downward ride at a speed that might make it derail and throw everyone out!

Related: Brace Yourself For The Bitcoin Roller Coaster Ride